Legislature(2019 - 2020)BARNES 124

03/16/2020 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 15 Minutes Following Session --
+= SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Consideration of Governor's Appointees: TELECONFERENCED
Board of Public Accountancy; Alcoholic Beverage
Control Board; State Board of Registration for
Architects, Engineers, & Land Surveyors; Board
of Barbers & Hairdressers; Board of Chiropractic
Examiners; Alaska Labor Relations Agency;
Marijuana Control Board; Board of Marital &
Family Therapy; Board of Massage Therapists;
Board of Certified Direct-Entry Midwives; Board
of Nursing; Occupational Safety & Health Review
Board; Board of Examiners in Optometry; Board of
Pharmacy; State Physical Therapy & Occupational
Therapy Board; Board of Professional Counselors;
Board of Psychologists & Psychological Associate
Examiners; Board of Certified Real Estate
Appraisers; Real Estate Commission; Regulatory
Commission of Alaska; Board of Social Work
Examiners; Board of Veterinary Examiners;
Workers' Compensation Appeals Commission; Alaska
Workers' Compensation Board
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 27 REGULATION OF FLAME RETARDANT CHEMICALS TELECONFERENCED
Moved CSHB 27(RES) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 16, 2020                                                                                         
                           3:45 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ivy Spohnholz, Chair                                                                                             
Representative Louise Stutes                                                                                                    
Representative Zack Fields                                                                                                      
Representative Sara Hannan                                                                                                      
Representative Andi Story                                                                                                       
Representative Mel Gillis                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Sara Rasmussen                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 27                                                                                                               
"An  Act relating  to the  manufacture,  sale, distribution,  and                                                               
labeling  of  child-related  products  containing  certain  flame                                                               
retardant   chemicals;  relating   to  an   interstate  chemicals                                                               
clearinghouse; adding  unlawful acts  to the Alaska  Unfair Trade                                                               
Practices  and  Consumer Protection  Act;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 27(RES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 52(FIN) AM                                                                                               
"An  Act  relating  to  alcoholic   beverages;  relating  to  the                                                               
regulation  of  manufacturers,   wholesalers,  and  retailers  of                                                               
alcoholic  beverages;  relating  to licenses,  endorsements,  and                                                               
permits  involving   alcoholic  beverages;  relating   to  common                                                               
carrier  approval to  transport or  deliver alcoholic  beverages;                                                               
relating  to the  Alcoholic Beverage  Control Board;  relating to                                                               
offenses  involving  alcoholic  beverages; amending  Rule  17(h),                                                               
Alaska Rules  of Minor  Offense Procedure;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  27                                                                                                                  
SHORT TITLE: REGULATION OF FLAME RETARDANT CHEMICALS                                                                            
SPONSOR(s): REPRESENTATIVE(s) TARR                                                                                              
                                                                                                                                
02/20/19       (H)       PREFILE RELEASED 1/11/19                                                                               
02/20/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/19       (H)       RES, L&C                                                                                               
04/03/19       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/03/19       (H)       Heard & Held                                                                                           
04/03/19       (H)       MINUTE(RES)                                                                                            
04/05/19       (H)       RES AT 1:00 PM BARNES 124                                                                              
04/05/19       (H)       Heard & Held                                                                                           
04/05/19       (H)       MINUTE(RES)                                                                                            
01/24/20       (H)       RES AT 1:00 PM BARNES 124                                                                              

01/24/20 (H) Scheduled but Not Heard

01/27/20 (H) RES AT 1:00 PM BARNES 124

01/27/20 (H) Heard & Held

01/27/20 (H) MINUTE(RES)

01/29/20 (H) RES AT 1:00 PM BARNES 124

01/29/20 (H) Scheduled but Not Heard

01/31/20 (H) RES AT 1:00 PM BARNES 124

01/31/20 (H) Scheduled but Not Heard 02/03/20 (H) RES AT 1:00 PM BARNES 124 02/03/20 (H) -- MEETING CANCELED -- 02/05/20 (H) RES AT 1:00 PM BARNES 124 02/05/20 (H) Moved CSHB 27(RES) Out of Committee 02/05/20 (H) MINUTE(RES) 02/07/20 (H) RES RPT CS(RES) NT 5DP 2NR 02/07/20 (H) DP: TUCK, HANNAN, HOPKINS, TARR, LINCOLN 02/07/20 (H) NR: TALERICO, RAUSCHER 02/26/20 (H) L&C AT 3:15 PM BARNES 124 02/26/20 (H) <Bill Hearing Canceled> 03/04/20 (H) L&C AT 3:15 PM BARNES 124 03/04/20 (H) -- MEETING CANCELED -- 03/06/20 (H) L&C AT 3:15 PM BARNES 124 03/06/20 (H) Heard & Held 03/06/20 (H) MINUTE(L&C) 03/13/20 (H) L&C AT 3:15 PM BARNES 124 03/13/20 (H) Heard & Held 03/13/20 (H) MINUTE(L&C) 03/16/20 (H) L&C AT 3:15 PM BARNES 124 BILL: SB 52 SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG SPONSOR(s): SENATOR(s) MICCICHE 02/11/19 (S) READ THE FIRST TIME - REFERRALS 02/11/19 (S) L&C, JUD, FIN 03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/26/19 (S) Heard & Held 03/26/19 (S) MINUTE(L&C) 03/28/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/28/19 (S) Heard & Held 03/28/19 (S) MINUTE(L&C) 04/02/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/02/19 (S) Heard & Held 04/02/19 (S) MINUTE(L&C) 04/04/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/04/19 (S) -- MEETING CANCELED -- 04/09/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/09/19 (S) Heard & Held 04/09/19 (S) MINUTE(L&C) 04/11/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/11/19 (S) Heard & Held 04/11/19 (S) MINUTE(L&C) 04/16/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/16/19 (S) Moved CSSB 52(L&C) Out of Committee 04/16/19 (S) MINUTE(L&C) 04/17/19 (S) L&C RPT CS FORTHCOMING 4DP 04/17/19 (S) DP: REINBOLD, COSTELLO, BIRCH, BISHOP 04/17/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg) 04/17/19 (S) -- MEETING CANCELED -- 04/17/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg) 04/17/19 (S) -- MEETING CANCELED -- 04/19/19 (S) L&C CS RECEIVED SAME TITLE 04/22/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg) 04/22/19 (S) Heard & Held 04/22/19 (S) MINUTE(JUD) 04/23/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg) 04/23/19 (S) Heard & Held 04/23/19 (S) MINUTE(JUD) 04/24/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg) 04/24/19 (S) Heard & Held 04/24/19 (S) MINUTE(JUD) 04/26/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg) 04/26/19 (S) Moved CSSB 52(JUD) Out of Committee 04/26/19 (S) MINUTE(JUD) 04/29/19 (S) JUD RPT CS 2DP 1AM SAME TITLE 04/29/19 (S) DP: HUGHES, MICCICHE 04/29/19 (S) AM: KIEHL 02/11/20 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/11/20 (S) Heard & Held 02/11/20 (S) MINUTE(FIN) 02/19/20 (S) FIN RPT CS FORTHCOMING 2DP 2NR 1AM 02/19/20 (S) DP: VON IMHOF, BISHOP 02/19/20 (S) NR: WIELECHOWSKI, HOFFMAN 02/19/20 (S) AM: WILSON 02/19/20 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/19/20 (S) Moved CSSB 52(FIN) Out of Committee 02/19/20 (S) MINUTE(FIN) 02/21/20 (S) FIN CS RECIEVED SAME TITLE 02/26/20 (S) TRANSMITTED TO (H) 02/26/20 (S) VERSION: CSSB 52(FIN) AM 02/28/20 (H) READ THE FIRST TIME - REFERRALS 02/28/20 (H) L&C, FIN 03/09/20 (H) L&C AT 3:15 PM BARNES 124 03/09/20 (H) Heard & Held 03/09/20 (H) MINUTE(L&C) 03/11/20 (H) L&C AT 3:15 PM BARNES 124 03/11/20 (H) Heard & Held 03/11/20 (H) MINUTE(L&C) 03/16/20 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER KARLA HEART, Staff Representative Geran Tarr Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Provided an overview of HB 27, on behalf of Representative Tarr, prime sponsor. KONRAD JACKSON, Staff Senator Peter Micciche Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the sectional analysis for SB 52, on behalf of Senator Micciche, prime sponsor. ANNA BRAWLEY, Senior Associate Agnew::Beck Consulting Anchorage, Alaska POSITION STATEMENT: Answered questions during the hearing on SB 52. SARAH OATES, President/CEO Alaska Cabaret, Hotel, Restaurant and Retailers Association Anchorage, Alaska POSITION STATEMENT: Testified in support of SB 52. EVAN WOOD, Owner Devil's Club Brewing Company Government Affairs Committee, Brewers Guild of Alaska Juneau, Alaska POSITION STATEMENT: Testified in support of SB 52. ROBIN MINARD Chief, Chief Communications Officer Mat-Su Health Foundation Wasilla, Alaska POSITION STATEMENT: Testified in support of SB 52. CAMDEN YEHLE Mat-Su, Alaska POSITION STATEMENT: Testified during the hearing on SB 52. PAUL THOMAS, Owner Alaska Cash Liquor Juneau, Alaska POSITION STATEMENT: Testified in support of SB 52. HELEN HARTMAN American Legion Post 17 Kodiak, Alaska POSITION STATEMENT: Testified in support of SB 52. JOSH HEGNA, Owner Girdwood Brewing Company Girdwood, Alaska POSITION STATEMENT: Testified in support of SB 52. BOBBY WILKEN, Owner Hoodoo Brewing Co. Fairbanks, Alaska POSITION STATEMENT: Testified in support of SB 52. BEN MILLSTEIN, Owner Kodiak Island Brewing Company Kodiak, Alaska POSITION STATEMENT: Testified in support of SB 52. DOUG HOGUE, Owner Kenai River Brewing Company Soldotna, Alaska POSITION STATEMENT: Testified in support of SB 52. BERT COTTLE, Mayor City of Wasilla Wasilla, Alaska POSITION STATEMENT: Testified during the hearing on SB 52. GLEN KLINKHART, Director Alaska Alcohol & Marijuana Control Office Department of Commerce, Community & Economic Development Anchorage, Alaska POSITION STATEMENT: Answered questions during the hearing on SB 52. ACTION NARRATIVE 3:45:17 PM CHAIR IVY SPOHNHOLZ called the House Labor and Commerce Standing Committee meeting to order at 3:45 p.m. Representatives Story, Stutes, Fields, Gillis, Hannan, and Spohnholz were present at the call to order. HB 27-REGULATION OF FLAME RETARDANT CHEMICALS 3:45:56 PM CHAIR SPOHNHOLZ announced that the first order of business would be CS FOR HOUSE BILL NO. 27(RES), "An Act relating to the manufacture, sale, and distribution of products containing certain flame retardant chemicals; relating to an interstate chemicals clearinghouse; adding unlawful acts to the Alaska Unfair Trade Practices and Consumer Protection Act; and providing for an effective date." 3:46:08 PM KARLA HEART, Staff, Representative Geran Tarr, Alaska State Legislature, on behalf of representative Tarr, prime sponsor, provided a brief review of HB 27. She stated that the bill seeks to regulate flame retardants in Alaska. She addressed a question about federal regulation of flame retardants from the last bill hearing. She clarified that the federal government does not regulate flame retardants; however, they do have standards for mattress flammability that can be met with non- toxic options. 3:47:15 PM REPRESENTATIVE FIELDS expressed his appreciation for the bill. He anecdotally reported that its surprisingly hard for consumers to figure out which products are non-toxic and safe for their families. 3:47:54 PM The committee took a brief at-ease. 3:47:58 PM REPRESENTATIVE STUTES moved to report CSHB 27, Version LS0198\K, out of committee with individual recommendations and the accompanying fiscal notes. Without Objection, CSHB 27(RES) was moved from the House Labor and Commerce Standing Committee. 3:48:22 PM The committee took an at-ease. 3:50:30 PM REPRESENTATIVE STUTES moved that the House Labor and Commerce Standing Committee authorize the chair to draft a bill regarding unemployment insurance for the state of Alaskas ongoing response to the coronavirus pandemic. There being no objection, it was so ordered. 3:51:02 PM REPRESENTATIVE HANNAN made a reference to furloughed Alaska Marine Highway System employees who were not eligible for unemployment when there was no return-to-work date. CHAIR SPOHNHOLZ said that's a great example of the gaps in employment that can be created. She explained that current unemployment insurance eligibility requires that applicants be seeking work or obtain a note that states they will not be reemployed within 45 days; however, many employees will not meet those requirements under the current circumstances. She said they are working with the Department of Labor & Workforce Development to figure out a specific solution that would serve those individuals. SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG 3:52:28 PM CHAIR SPOHNHOLZ announced that the final order of business would be CS FOR SENATE BILL NO. 52(FIN) am, "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, wholesalers, and retailers of alcoholic beverages; relating to licenses, endorsements, and permits involving alcoholic beverages; relating to common carrier approval to transport or deliver alcoholic beverages; relating to the Alcoholic Beverage Control Board; relating to offenses involving alcoholic beverages; amending Rule 17(h), Alaska Rules of Minor Offense Procedure; and providing for an effective date." 3:53:05 PM KONRAD JACKSON, Staff, Senator Peter Micciche, Alaska State Legislature, presented the sectional analysis for SB 52, continued from the previous bill hearing, on behalf of Senator Micciche, prime sponsor. [Because of its length, the sectional analysis is provided at the end of the minutes for SB 52.] MR. JACKSON explained Sections 115-171. 3:57:01 PM REPRESENTATIVE FIELDS pointed out that the mayor of Anchorage shut down bars and restaurants except for takeout. He said what were already tough circumstances for working people and business owners in downtown Anchorage will be approaching devastating levels this summer. He opined that being prepared for the pandemic is in part, helping businesses survive what will probably be the worst depression in the Alaskas history. He expressed his hope that the bill will be heard and advanced expeditiously 3:57:50 PM REPRESENTATIVE STUTES sought clarification on stacking licenses. SENATOR MICCICHE explained that under current law, an individual could own a cidery, a winery, and a brewery, but they could not be operated under the same license in the same building. He reiterated that current law does not allow license stacking and that would not change under SB 52. CHAIR SPOHNHOLZ offered her understanding that an individual can own multiple licenses, but the total serving limit would be apportioned. SENATOR MICCICHE clarified that Chair Spohnholz may be confusing sampling with tasting rooms. CHAIR SPOHNHOLZ acknowledged that. 4:00:23 PM SENATOR MICCICHE referred attention to the Title 4 Review Report [included in the committee packet]. He noted that the report addresses the changes to license fees on page 75 and the changes to penalties on pages 76-81. 4:01:26 PM REPRESENTATIVE HANNAN referencing Section 145, sought to clarify whether nonalcoholic Kombucha is included in the bill. SENATOR MICCICHE stated if it's nonalcoholic it's not in the bill. He noted that alcoholic kombucha is currently unheard of; however, in the industry, if a beverage tastes good its often converted to an alcoholic drink. He explained that they were trying to be forward thinking in case kombucha follows that trend. CHAIR SPOHNHOLZ explained that kombucha is not made with cereal grain; instead, it is made from a symbiotic culture of bacteria and yeast (SCOBY) and tea. She said its a nonalcoholic beverage, although sometimes it contains a small percentage of alcohol. REPRESENTATIVE HANNAN reiterated her interest in ensuring that undue regulations are not being added for a category of beverages that should not be addressed in the bill because it is nonalcoholic. CHAIR SPOHNHOLZ echoed her colleague's sentiments. SENATOR MICCICHE stated that there's a reason it's in the bill. He deferred to Ms. Brawley. 4:05:27 PM ANNA BRAWLEY, Senior Associate, Agnew::Beck Consulting, referencing information provided on the Alcohol and Tobacco Tax and Trade Bureau (TTB) website, reported that federal and state law define alcohol as anything above 0.5 percent ABV (alcohol by volume), which could be kombucha if its fermented and in that way. She added that most products that are commercially available are not, making them outside the jurisdiction of the Alcohol and Beverage Control (ABC) Board. She said the bill ensures that if someone were to make kombucha that is alcoholic it would be under the purview of a brewed beverage. She explained that from the TTBs standpoint, kombucha is defined as a brewed beverage similar to the way that mead is made from honey and still considered a wine. She noted that these regulations would not apply to businesses that currently do not have to be licensed by the state. CHAIR SPOHNHOLZ sought clarification on whether alcoholic kombucha exists. MS. BRAWLEY offered her understanding that theoretically, it can be made. She added that to the best of her knowledge, no businesses in Alaska are currently producing it. 4:07:42 PM SARAH OATES, President/CEO, Alaska Cabaret, Hotel, Restaurant and Retailers Association, stated that Alaska Cabaret, Hotel, Restaurant and Retailers (CHARR) and the Brewers Guild of Alaska met many times throughout 2019 to discuss the most contentious sections of Title 4 that have caused previous iterations of the bill to stall out in the legislative process. She said that through challenging yet thoughtful compromise, consensus has finally been reached between public health, public safety, both state and municipal regulatory bodies, and all three industry tiers. SB 52 includes many changes that would benefit all stakeholders. She explained that the addition of endorsements would empower local governments, while protecting licensees by giving municipalities a clear, legal means to restrict privileges of a license if necessary, without having to request revocation of the licenses operations entirely. She recounted her experience working for the Alcohol and Marijuana Control Office (AMCO), adding that this bill will allow members of the industry to pick up a statute book and understand their legal privileges, restrictions, and expectations for the first time in decades. In closing, she relayed Alaska CHARRs full support for SB 52 and implored the committee to pass the legislation. 4:10:22 PM EVAN WOOD, Owner, Devil's Club Brewing Company; Government Affairs Committee, Brewers Guild of Alaska, expressed his support for SB 52. He said the current version of the bill is an eight-year culmination of robust stakeholder engagement, supported by public health, public safety, and all three tiers of the industry. With the future of the industry and the economy at-large in question, he urged the committee to move this legislation forward. 4:12:07 PM ROBIN MINARD Chief, Chief Communications Officer, Mat-Su Health Foundation, voiced her strong support for SB 52 based on the public health elements of the bill. She said it will help prevent underage drinking and support better enforcement of Alaskas alcohol laws. She reported that alcohol and substance abuse were ranked as the number one health issue in Matanuska- Susitna. She offered her belief that having a well-regulated alcohol industry that understands and follows the law is part of the solution. Title 4 is recognized to be outdated, confusing, and otherwise ineffective in carrying out the intent of the law, she said. This systemic redraft of Title 4 will benefit organizations and individuals who are affected by alcohol. She stated that SB 52 will limit youth access to alcohol, promote responsible use by adults, and reduce harm. For that reason, she urged its passage this legislative session. 4:14:14 PM CHAIR SPOHNHOLZ opened public testimony. 4:14:26 PM CAMDEN YEHLE conveyed her plans to open a brewery restaurant; however, she expressed concern about the proposed population changes that would effectively limit the number of brewery tap room licenses from thirty to seven. Five of which are already taken, she said. She pointed out that she could be shut out of the industry if she fails to obtain one of the two remaining licenses. She said she believes that more brewery openings make for more brewery customers, which is good for everyone. She opined that aside from the changes to population limits, the bill looks fantastic. She encouraged the committee to pass SB 52. 4:16:46 PM REPRESENTATIVE HANNAN sought clarification on how the population cap would specifically affect the Mat-Su Borough. MS. YEHLE offered her understanding that the bill changes the population cap from 3,000 per license to 12,000 per license. She shared, for example, that the city of Wasilla has 8,000 people, allowing for one tap room license, which was already acquired. 4:18:37 PM CHAIR SPOHNHOLZ asked Ms. Brawley to describe the reason for population cap limits and how the restructuring of those limits was designed regarding cities and boroughs. MS. BRAWLEY explained that the current population limit is 3,000 for most licenses. She added, that is defined by local government population. There is a different method for determining the limits for unorganized boroughs, she said. She stated that the proposal is to increase the population limit on new licenses. She further noted that it splits the manufacturing license between production and the retail room. That would allow a manufacturer to get a brewery license with no population limit and exercise it with, for example, a bar, restaurant, or package store license, which cannot be done under current law. She said this would increase flexibility and allow the market to respond to demand without increasing the number of licenses. She added that the purpose of population limits is to limit the number of retail outlets in a certain area because the density of outlets is associated with higher public health and safety impacts, such as crime and violence. 4:20:39 PM MS. BRAWLEY responding to a follow-up question from Representative Hannan, clarified that by unorganized borough she was referring to a location with no local government and therefore, no official determination of residency. She explained that the population in the borough outside a city has a certain number, and then the city would use the residence of that city to determine a separate number, so they are two different numbers." CHAIR SPOHNHOLZ offered her understanding that part of the reason for restructuring the population limits is to avoid a situation where there is a [population] cap inside a city that is located inside of a borough, which forces alcohol businesses right outside the city limit to work around the population cap. She asked if that is correct. MS. BRAWLEY confirmed that. She noted that the bill includes a proposal to allow cities to petition for additional restaurant licenses so a city with a small population, as you said, that is serving a larger area could petition for those additional restaurant licenses, make them available and, because there would be no limit on manufacturing licenses and it would be allowed for a brewery or a distillery or a winery to own one of those licenses, it would be possible to essentially create a brewpub 4:24:55 PM MS. BRAWLEY responding to comments from Representative Hannan and Chair Spohnholz, said she does not have the information available in terms of the specific number of licenses in each community because it depends on the population. 4:25:28 PM PAUL THOMAS, Owner, Alaska Cash Liquor, expressed his support for SB 52. He addressed the eight-year process, adding that everyone had to compromise to reach the current result. He stressed the importance of passing SB 52 to stabilize the industry, especially given the uncertainty of the tourism industry due to the coronavirus. He reiterated that SB 52 is imperative for industry stability. 4:27:21 PM HELEN HARTMAN, American Legion Post 17, stated that SB 52 is a product of over eight years of hard work from 150 different stakeholders from across the state. She voiced her full support for the bill. She said that with the coronavirus pandemic on the forefront of peoples minds, the industry is in dire need of stability. She added that SB 52 will provide that stability. 4:28:24 PM JOSH HEGNA, Owner, Girdwood Brewing Company, expressed his full support for SB 52. He said the bill is the result of an eight- year collaborative stakeholder process that included public health, public safety, and all three tiers of the industry. He offered his belief that SB 52 would provide meaningful improvement to alcohol regulation in Alaska. He urged the committee to move the legislation forward expeditiously. 4:29:47 PM BOBBY WILKEN, Owner, Hoodoo Brewing Co., expressed his full support for SB 52. He anecdotally explained the difficulty of navigating Alaskas current alcohol regulations. He said the bill is the result of an eight-year collaborative stakeholder process, adding that it will modernize the industry and allow it to move forward in the future. He addressed the coronavirus pandemic and the detrimental effect it could have on the industry. He urged the committee to move the legislation forward expeditiously. 4:31:26 PM BEN MILLSTEIN, Owner, Kodiak Island Brewing Company, expressed his support for SB 52 and echoed the sentiments of his fellow testifiers. He added that the bill is the result of an eight- year collaborative stakeholder process. 4:32:30 PM DOUG HOGUE, Owner, Kenai River Brewing Company, expressed his support for SB 52, adding that it's a step in the right direction towards modernizing Alaskas liquor laws. He addressed the coronavirus pandemic and the detrimental effect it could have on the industry. He urged the committee to support the bill. 4:33:38 PM BERT COTTLE, Mayor, City of Wasilla, stated that the city of Wasilla supports the one amendment that still is in there." He said, at least we have the opportunity to go back once a year now - if that amendment stays - to ask for additional restaurant, beer, and wine licenses." He explained that it takes local control away from the local jurisdiction on economic development. He discussed package stores and full pours in Wasilla. He expressed his support for the educational aspect and the law enforcement in the bill. 4:36:11 PM REPRESENTATIVE HANNAN sought clarification on Mayor Cottles meaning of "come back once a year." MAYOR COTTLE explained that under SB 52 in its current form, the city of Wasilla would be allowed to appear in front of the [ABC] Board once a year to ask for additional beer and wine licenses. He noted that there is not a provision in the bill that would allow him to ask the board for an additional package store. 4:37:27 PM CHAIR SPOHNHOLZ closed public testimony. 4:37:52 PM CHAIR SPOHNHOLZ questioned whether the Alaska Center for the Performing Arts can [serve] alcohol on their premises. MR. JACKSON offered his understanding that the language in the [theatre] license is sufficient except for the potential issue with the Alaska Center for the Performing Arts building and its ability to limit minors access to areas where alcohol is served. He noted that building layouts are not addressed in this legislation. 4:39:36 PM CHAIR SPOHNHOLZ asked Mr. Klinkhart to interpret the theatre license as outlined in the bill and whether beer and wine could be served during intermission at the Alaska Center for the Performing Arts. GLEN KLINKHART, Director, Alaska Alcohol & Marijuana Control Office, Department of Commerce, Community & Economic Development, offered his understanding that it could be; however, he said the issue of controlling access for minors has been discussed. 4:41:20 PM REPRESENTATIVE FIELDS sought to clarify whether the current bill protects the [Alaska Center for the Performing Arts] ability to continue serving alcohol in the atrium. MR. KLINKHART said he does not know. CHAIR SPOHNHOLZ offered her understanding that the bill as it's currently written, allows beer and wine to be served with a theatre license; however, there is some ambiguity about how it would be implemented. She added that there are limitations in statute and perhaps in regulation that requires beer and wine to be served in a 21-and-over area, which the Alaska Center for the Performing Arts does not have. She noted that she does not intend on expanding access to alcohol. Nonetheless, she expressed her interest in ensuring that the Alaska Center for the Performing Arts can continue to serve beer and wine during intermission. 4:43:25 PM REPRESENTATIVE FIELDS agreed. He asked Mr. Jackson to confirm the bill sponsors intent regarding the Alaska Center for the Performing Arts. MR. JACKSON directed attention to Section 04.09.250 on page 17 of the bill. He explained that SB 52 relocates the license from 3AAC 304 695, which codifies the regulation that allows theatre licenses to serve alcoholic beverages into statute. 4:44:14 PM REPRESENTATIVE HANNAN asked Mr. Klinkhart if he exercised the enforcement of alcohol at the Alaska Center for the Performing Arts during the last decade. She asked if he is concerned about it being served in the atrium area. MR. KLINKHART said he inquired about the Alaska Center for the Performing Arts during his extensive four months on the job. He added that the center has shown its ability to self-regulate, as there have been no incidents regarding public safety. Nonetheless, the old Title 4 information shows that they have been doing it against statute. CHAIR SPOHNHOLZ asked if the requirement to isolate a 21-and- over area where alcohol is served is in statute or regulation. MR. KLINKHART offered his understanding that its in statute; however, it was intended to regulate bars. 4:47:06 PM MR. KLINKHART responding to a follow-up question from Chair Spohnholz, said [the Alaska Center for the Performing Arts] would need a designated area for the purpose of selling alcohol. 4:47:42 PM CHAIR SPOHNHOLZ asked how alcohol is sold over the internet and how that would be regulated in the state of Alaska. MR. JACKSON deferred to Ms. Brawley. 4:48:31 PM MS. BRAWLEY said currently, online alcohol sales are not regulated in Alaska. She explained that SB 52 proposes to limit online sales to wine from wineries with a direct shipment license, which is consistent with 44 other states. She noted that the purchaser would be required to demonstrate that they are of age and would not be able to purchase in a local option area. Furthermore, she said, in-state package stores would still be able to ship wine or spirits to customers. CHAIR SPOHNHOLZ asked if an order from an in-state package store would still be considered an online sale. MS. BRAWLEY explained that regardless of where an individual lives in Alaska, if he or she orders form a package store it must be done through a written order, which is interpreted as a paper order as long as the store already has the individuals ID on file. She noted that SB 52 also proposes to allow Alaska package stores to offer their products online with the same protections, adding that if its purchased through a dry or damp community it would still have to be reported through the written order database that controls the monthly limits on customers in those areas. 4:50:51 PM CHAIR SPOHNHOLZ announced that SB 52 would be held over. SECTIONAL ANALYSIS The following sectional analysis for CSSB 52(FIN) am was presented during the hearing [original punctuation provided]. Title 4, Chapter 6: Alcohol Beverage Control Board Section 1: Declaration of Policy; purpose; finding. Adds a new section AS 04.06.005 (Pages 1-2) Section 2: Authority of director. Adds a new subsection AS 04.06.075 to require that the director of the Alcoholic Beverage Control board (ABC board) shall include in the agency's budget resources for administration, enforcement, education, training, and prevention activities under Title 4. (Page 2) Section 3: Delegation of Authority. Amends AS 04.06.080 to add endorsements to the delegated powers of the director of the ABC board. (Page 2) Section 4: Powers and duties. Amends AS 04.06.090(b) to relocate existing language in 04.11.070 and adds endorsements to the powers of the ABC board. (Page 2) Section 5: Powers and duties. Amends AS 04.06.090(e) to add endorsements. This section requires the board to notify all licensees and municipalities of major changes to Title 4. (Page 2) Section 6: Powers and duties. Amends AS 04.06.090 to add a new subsection (f) that directs the board to prepare a Title 4 education plan for public safety, industry, youth, municipalities, and the public with annual revision. Adds new subsections (g-j) which direct the board to review fees every 5 years, allow opinions on legislation amending this title, requires the board to provide notice of violations to licensees after receiving from the court system, and to post FASD information online. (Page 3) Subsection 7: Statewide database. Amends AS 04.06.095 to allow for certain information from the statewide database to be retained for 10 years, only identifying information will be purged annually. Adds a reference to a package store shipping endorsement. (Pages 3-4) Subsection 8: Statewide database. Adds a new subsection AS 04.06.095(c), which directs the board to produce a report of aggregate regional sales of alcohol in local option areas, based on information retained in database and not including identifying data about an individual purchaser or seller. (Page 4) Section 9: Regulations. Amends AS 04.06.100(b) Regulations, to add endorsements, removes the board's power to create additional licenses and permits in regulation, and adds the power to restrict manufacturing, packaging, sale, and distribution of products containing alcohol intended for human consumption. (Pages 4-5) New Chapter 9: Licenses, Endorsements and Permits Section 10: Adds the new Chapter 09 to Title 4 Licenses, Endorsements and Permits. Relocates and renumbers many existing licenses and permits from Chapter 11. Organizes into articles of licenses listed by the 3 tiers: manufacture, wholesale, retail; endorsements; and permits. (Pages 5-51) Article 1. License Types. AS 04.09.010. Types of licenses. Gives the definition of license, three tiers, and limits license types to those listed in this chapter. (Page 6) Article 2. Manufacturer Licenses. AS 04.09.020. Brewery manufacturer license. Relocates the brewery license from 04.11.130, moves other provisions from current brewery license to new retail license and endorsements, sets the biennial fee at $1,250 and requires that fermentation must occur on the licensed premises. (Page 6) AS 04.09.030. Winery manufacturer license. Relocates the winery license from 04.11.140, moves other provisions from current winery license to new retail license and endorsements, sets the biennial fee at $1,000 and requires that fermentation must occur on the licensed premises. (Page 6) AS 04.09.040. Distillery manufacturer license. Relocates the distillery license from 04.11.160, moves other provisions from current winery license to new retail license and endorsements, sets the biennial fee at $1,250 and requires that at least 80% of the final product of distilled spirits sold be manufactured on licensed premises in Alaska. (Page 6) AS 04.09.050. Authorized sales. Retains existing privileges for smaller manufacturers to self- distribute to retail, wholesale, permitted and out of state or country licensees. Requires large manufacturers to go through wholesale distributors. (Pages 6-7) AS 04.09.060. Unlicensed manufacturing. Relocates existing penalty for unlicensed manufacture from 04.11.010. (Page 7) AS 04.09.080. Unauthorized manufacturer sale. Defines unauthorized manufacturer sale as violating 04.09.050 and sets the penalty. (Pages 8-9) AS 04.09.090. Definition. Defines "packaging" in this section, which is the process of containing alcoholic beverages in bottles or other containers for sale. (Page 8) Article 3. Wholesale Licenses AS 04.09.100. General wholesale license. Relocates the general wholesale license from 04.11.160, moves other existing components to other places in the chapter, maintains $2,000 biennial fee, maintains $10,000 maximum fee, and reduces annual transaction fees for smaller businesses. (Pages 8-9) AS 04.09.110. Limited wholesale brewed beverage and wine license. Relocates limited wholesale license from previous wholesale license section (AS 04.11.160(b)) in a separate section, maintains $400 biennial fee, maintains maximum $10,000 fee, and reduces annual transaction fees for smaller businesses. (Page 9) AS 04.09.120. Annual fee and affidavit. Relocates existing affidavit requirement from previous wholesale licenses section (AS 04.11.160(c)-(d)), requires a wholesale licensee to submit an affidavit to the board stating total value of annual sales, including tax. (Page 10) AS 04.09.130. Wholesaler supplier declaration. Relocates the wholesale supplier declaration from previous wholesale licenses section (AS 04.11.160(e)), maintains current fee structure, and simplifies the required reporting process. (Page 10) AS 04.09.140. Unlicensed wholesale sale. Relocates unlicensed wholesale provision from 04.11.010 and maintains penalty. (Pages 10-11) AS 04.09.150. Failure to pay annual fee or file affidavit. States that failure to pay an annual wholesale fee or file an affidavit is a violation and sets the penalty. (Page 11) AS 04.09.160. Failure to pay biennial fee or file declaration. States that failure to pay a biennial fee and failure to file a declaration are violations and sets the penalty. (Page 11) Article 4. Retail Licensees AS 04.09.200. Beverage dispensary license. Relocates and simplifies the BDL license language from 04.11.090, maintains the $2,500 biennial fee, references the multiple fixed counter endorsement, and sets the penalty for unauthorized beverage dispensary activity. Sections in current BDL for bowling alley and hotel licensees relocated to become separate endorsements. (Pages 11-12) AS 04.09.210. Restaurant and eating place license. Relocates license from 04.11.100, sets biennial fee at $1250, defines the 1:1 food to alcohol ratio, limits the number of annual allowed after-hours entertainment events to six, defines when minors can be on the premises, and sets penalty for failure to comply with license terms. (Pages 12-14) AS 04.09.220. Club license. Relocates license from 04.11.110, sets biennial fee at $1,500, defines what qualifies as membership, and sets the penalty for failure to comply with license terms. (Pages 14-15) AS 04.09.230. Package store license. Relocates license from 04.11.150, maintains biennial fee of $1,500, and sets penalty for failure to comply with licenses terms. Sections in current AS 04.11.150 for delivery, shipping and other activities relocated to become separate endorsements. (Pages 15-16) AS 04.09.240. Pub license. Relocates license from 04.11.220, sets biennial fee at $1,250, and sets penalty for failure to comply with license terms. Adds provision allowing designation of alternating premises, which allows a second location on a university campus that must be operated during mutually exclusive hours from existing license. (Pages 16-17) AS 04.09.250. Theatre license. Relocates license from regulation (3 AAC 304.695), sets biennial fee at $1,250, defines theater as including live performance events, and sets the penalty for failure to comply with license terms. (Pages 17-18) AS 04.09.260. Common carrier dispensary license. Relocates license from 04.11.180, maintains current fee schedule, removes "vehicle" as a qualifying premises, and sets penalties for unauthorized common carrier dispensary activity and common carrier dispensary noncompliance. (Pages 18-19) AS 04.09.270. Sporting activity or event license. Relocates and renames recreational site license, sets biennial fee at $1,250, sets penalty for unauthorized sporting event activity, and establishes 8-year sunset dates for licenses issued under former AS 04.11.210 that do not conform to statute. (Pages 19-20) AS 04.09.280. Outdoor recreation lodge license. Relocates license from 04.11.225, sets biennial fee at $2,500, and sets penalty for unauthorized outdoor recreation lodge activity. (Page 20) AS 04.09.290. Golf course license. Relocates license from 04.11.115, sets biennial fee at $1,250, and sets penalty for failure to comply with license terms. (Pages 20-21) AS 04.09.300. Destination resort license. Relocates license from 04.11.255, sets biennial fee at $2,500, and sets penalty for failure to comply with license terms. (Page 21) AS 04.09.310. Brewery retail license. Creates new license type based on relocated existing language in AS 04.11.130 for brewery retail activities, sets biennial fee at $1,250, requires retail license to be adjacent to manufacturing location, extends brewery closing time to 10pm, allows limited presentations, classes and fund raising events on premises and sets penalty for failure to comply with license terms. (Pages 21-23) AS 04.09.320. Winery retail license. Creates new license type based on existing language in AS 04.11.140 for winery retail activities, sets biennial fee at $1,000, requires retail license to be adjacent to manufacturing location, defines sales volume limits for cider and mead depending on alcohol content, extends winery closing time to 10pm, allows limited presentations, classes and fund raising events on premises and sets penalty for failure to comply with license terms. (Pages 23-24) AS 04.09.330. Distillery retail license. Creates new license type based on existing language in AS 04.11.170 for distillery retail activities, sets biennial fee at $1,250, requires retail license to be adjacent to manufacturing location, extends distillery closing time to 10pm, allows limited presentations, classes and fund raising events on premises, and sets penalty for failure to comply with license terms. (Pages 24-25) AS 04.09.340. Beverage dispensary tourism license. Relocates license from AS 04.11.400(d), maintains biennial fee at $2,500, maintains exemption from number of rooms required for renewing licenses, and sets penalty for unauthorized beverage dispensary activity. Other language in AS 04.11.400(d) relocated to Hotel or Motel Endorsement. (Pages 25-27) AS 04.09.350. Seasonal restaurant or eating place license. Creates new license type, sets biennial license fee at $1,250, defines which communities can qualify for having this license type, sets out formula for determining number of allowed licenses per community, and sets penalty for failure to comply with license terms. (Pages 27-29) AS 04.09.360. Winery direct shipment license. Creates new license type authorizing direct to consumer (including online) sales of wine for in-state or out- of-state winery, sets biennial license fee at $200, directs the board to develop an application form specifically for this license, prohibits sales by this license type to local option areas, and sets penalty for failure to comply with license terms. (Pages 29- 31) AS 04.09.370. Unlicensed retail sale. Relocates existing unlicensed retail sale from 04.11.010 and maintains misdemeanor A penalty. (Page 31) Article 5. Endorsements. AS 04.09.400. Types of endorsements. Defines endorsements, clarifies that endorsements must be exercised with a license. (Pages 30-31) AS 04.09.410. Manufacturer sampling endorsement. Creates new endorsement for onsite sampling relocated with existing language from manufacturing licenses, defines per person per day volume limits by product type, sets biennial fee at $200, sets penalties for unendorsed sampling and endorsement noncompliance. (Pages 32-33) AS 04.09.420. Multiple fixed counter endorsement. Creates new endorsement for multiple fixed counters with language relocated from duplicate license section in AS 04.11.090, sets biennial fee at $200, sets initial application fee of $1,250 per counter, sets penalties for endorsement noncompliance and unendorsed service. (Pages 33-34) AS 04.09.430. Hotel or motel endorsement. Creates new endorsement using some language relocated from AS 04.11.090, sets biennial fee at $200, sets penalties for unendorsed hotel or motel service and endorsement noncompliance. (Pages 34-35) AS 04.09.440. Large resort endorsement. Creates new endorsement using some language relocated from AS 04.11.090, defines a large resort, sets biennial fee at $200, sets penalties for unendorsed large resort service and endorsement noncompliance. (Pages 35-36) AS 04.09.450. Restaurant endorsement. Creates new endorsement using language from the Restaurant Designation Permit currently in regulation, defines which license types may qualify for the endorsement, sets biennial fee at $200, defines situations in which minors may be present on licensed premises for employment or dining, and sets penalties for unendorsed restaurant service and endorsement noncompliance. (Pages 36-38) AS 04.09.460. Package store shipping endorsement. Creates new endorsement by relocating language from AS 04.11.150, allows licensees to accept online orders, sets biennial fee at $200, maintains requirement to enter orders to customers in local option areas in written order database, and sets penalties for unendorsed package store shipping and endorsement noncompliance. (Pages 38-39) AS 04.09.470. Package store delivery endorsement. Creates new endorsement by relocating language from AS 04.11.150, sets biennial fee at $200, sets penalties for unendorsed package store delivery and endorsement noncompliance. (Pages 39-40) AS 04.09.480. Package store repackaging endorsement. Creates new endorsement by relocating language from regulation, sets biennial fee at $200, sets penalties for unendorsed package store repackaging and endorsement noncompliance. (Pages 40-41) AS 04.09.490. Package store sampling endorsement. Creates new endorsement, defines per person per day volume limits by product type, sets biennial fee at $200, sets penalties for unendorsed package store sampling and endorsement noncompliance. (Pages 41-42) AS 04.09.500. Bowling alley endorsement. Creates new endorsement using language from AS 04.11.090, sets biennial fee at $200, sets penalties for unendorsed bowling alley service and endorsement noncompliance. (Pages 42-43) AS 04.09.510. Golf course endorsement. Creates new endorsement using language from AS 04.11.115, allows a beverage dispensary to serve alcoholic beverages on its course, sets biennial fee at $200, and sets penalties for unendorsed golf course service and endorsement noncompliance. (Page 43) AS 04.09.520. Brewery repackaging endorsement. Creates new endorsement by relocating language from AS 04.11.135, limits availability to licensees currently operating brewpubs as of the bill's effective date, sets biennial fee at $200, sets penalties for unendorsed brewery repackaging and endorsement noncompliance. (Pages 43-44 Article 6. Permits. AS 04.09.600. Types of permits. Defines permits, establishes application process, requires servers to have an alcohol server education card, and sets daily fee for all permit types at least $50 per event day. (Pages 44-45) AS 04.09.610. Beverage dispensary caterer's permit. Relocates caterer's permit from 04.11.230 and renames. (Pages 45-46) AS 04.09.620. Restaurant caterer's dining permit. Relocates permit from regulations, renames to allow service of meals other than dinner, and requires counting sales from permit events as part of food to alcohol ratio sales requirement. (Page 46) AS 04.09.630. Club caterer's permit. Relocates permit from regulations, limits permitted events to 3 per year, and simplifies existing language for application process. (Page 46) AS 04.09.640. Art exhibit permit. Relocates permit from regulations, removes option for annual $100 fee, and simplifies existing language. (Pages 46-47) AS 04.09.645. Music festival permit. Creates a new permit, allows a restaurant or eating place to serve beer or wine at a festival held off the holder's licensed premises. Requires the festival must take place in an unorganized borough, may not exceed four days, festival must have taken place at the same location for at least the last ten years. (Page 47) AS 04.09.650. Nonprofit organization event permit. Relocates special events permit from 04.11.240 and renames, simplifies existing language for application process. Expands the number of nonprofit organization event permits per year. (Pages 47-48) AS 04.09.660. Alcoholic beverage auction permit. Relocates wine auction permit from regulations and renames to allow all alcoholic beverages to be auctioned and simplifies existing language for application process. (Pages 48-49) AS 04.09.670. Package Store Tasting event permit. Creates new permit, allows a package store to host a tasting event on the package store's licensed premises with service from its own inventory, sets a time limit and food requirement, and limits to six events per license per year. (Pages 49-50) AS 04.09.680. Inventory resale permit. Relocates retail stock sale license from 04.11.200, maintains $100 fee, and renames the permit. (Page 50) AS 04.09.685. Live music or entertainment permit. Creates new permit, allows holders of a brewery retail license, winery retail license or distillery retail license to hold up to four live entertainment events per year, on premises, between the hours of 9am and 10pm on a single day. (Page 50) AS 04.09.690. Conditional contractors permit. Relocates permit from 04.11.250 and sets the fee at $1,250. (Pages 50-51) AS 04.09.700. Failure to comply with a permit requirement. Sets the penalties for failure to comply with permit requirements. (Page 51) Article 7. Common Carrier Approval AS 04.09.750. Common carrier approval. Requires the board to approve a common carrier to transport and deliver alcoholic beverages to consumers within the state in response to a consumer's order, and sets requirements and penalties for common carriers. (Pages 51-52) Chapter 11: Licensing Section 11: License or permit required; presumption concerning possession for sale. Amends AS 04.11.010(a) to state that a person may not knowingly possess for barter, traffic in or barter an alcoholic beverage unless under license or permit. Maintains existing misdemeanor A penalty. Other provisions regarding illegal sales and manufacturing are relocated to new penalty sections in Section 10. (Pages 52-53) Section 12: License or permit required; presumption concerning possession for sale. Amends AS 04.11.010(b) to add a reference to the package store shipping license for soliciting and accepting shipments of an alcoholic beverage in a local option area. (Page 53) Section 13: License or permit required; presumption concerning possession for sale. Amends AS 04.11.010(c) to add a reference to unlicensed sale, corrects term "half-keg," adds clarification to the type of alcoholic beverage (formerly "malt"), and adds barter to local option violation. (Page 53) Section 14: Purchase from nonlicensee prohibited. Amends AS 04.11.015 to prohibit the purchase or barter for alcoholic beverages from a nonlicensee and sets penalty as a violation with $250 fine. (Page 54) Section 15: Death of licensee. Amends AS 04.11.030(b) to increase the period of time for a transfer of ownership of a license from a deceased licensee to 180 days (from 90 days). (Page 54) Section 16: Board approval of transfers. Adds new subsections to AS 04.11.040 (d) and (e) to make it a a minor offense and provide for a penalty for the unauthorized transfer of an alcoholic beverage license or permit. It is a violation. (Page 54) Section 17: Reports required of limited liability organization. Adds new subsections to AS 04.11.045 (c) and (d) to set the penalty for failure to report a change in member interest or manager at a $250 fine. (Page 54) Section 18: Reports required of corporations. Adds new subsections to AS 04.11.050 (c) and (d) to set the penalty for failure to report a stock transfer or change of officers or board members at a $250 fine. (Page 54) Section 19: Reports required of partnerships. Adds new subsections to AS 04.11.055 (c) and (d) to set the penalty for failure to report a transfer of partnership interest or change of general partner at a $250 fine. (Pages 54-55) Section 20: Nonresident distiller, brewer, winery, or wholesaler. Amends AS 04.11.060 Nonresident distiller, brewer, winery or wholesaler to add the reference to renumbered general wholesale license. This section requires out-of-state distillers, brewers, wineries, and wholesalers to obtain a general wholesale license if their principal operations is located outside of Alaska. (Page 55) Section 21: Nonresident distiller, brewer, winery, or wholesaler. Amends AS 04.11.060 to add a new subsection (b) to maintain the existing misdemeanor A penalty for violating the previous section. (Page 55) Section 22: Application for new license or permit. Amends AS 04.11.260 Application for a new license, endorsement, or permit to include the new endorsements, multiple fixed counter endorsement fees, and requirements for a conditional contractor's permit. This section requires the mailing address, phone number and e-mail of the applicant, requires annotated licensed premises illustrations and adds license references with individual application requirements. (Pages 55-57) Section 23: Application for new license or permit. Amends AS 04.11.260 to exempt winery direct shipment license from the application process for other license types, defined instead in AS 04.09.360 (Page 57) Section 24: Application for renewal of license or permit. Amends AS 04.11.270 to add endorsements, adds conditional contractor's permit, and allows applications to be sent via electronic mail. (Page 57) Section 25: Application for renewal of license or permit. Amends AS 04.11.270 to exempt winery direct shipment license from the renewal process, defined instead in AS 04.09.360. (Page 58) Section 26: Application for transfer of a license to another person. Amends AS 04.11.280 to add endorsements as transferrable with a license. (Page 58) Section 27: Adds a provision for automatic transfer of a REPL or seasonal REPL license if the board takes no action within 90 days. (Pages 58-59) Section 28: Criminal justice information and records. Amends AS 04.11.295(a) to clarify issuance and renewal of a conditional contractor's permit as it pertains to criminal justice information records. (Page 59) Section 29: Criminal justice information and records. Amends AS 04.11.295(c)(1) adds reference to conditional contractor's permit to the definition of "applicant." (Page 59) Section 30: Notice of application. Adds new subsection AS 04.11.310 (c) to exempt winery direct shipment license from notice requirements that do not pertain to this type of license. (Page 59) Section 31: False statement on application. Adds a new subsection to AS 04.11.315, relocating AS 04.16.210 and defines the crime of making false statements on an application as perjury, with the existing felony C penalty defined in AS 11.56.200. (Page 59) Section 32: Denial of new licenses and permits. Amends AS 04.11.320(a) to add references to endorsements in the currently existing denial of new licenses and permits statute. This section also requires disclosure of the identity and financing of a licensee. (Pages 59-61) Section 33: Denial of license or permit renewal. Amends AS 04.11.330(a) to remove reference to public convenience licenses. [Effective immediately] (Page 61) Section 34: Denial of license or permit renewal. Amends AS 04.11.330(a) (duplicate section) to add endorsement, adds reference to beverage dispensary tourism license, and adds reference to seasonal restaurant or eating place tourism license. [Effective with other licensing changes 1/1/2021] (Pages 61-62) Section 35: Denial of license or permit renewal. Amends AS 04.11.330(b) to include outstanding fees or penalties due to a state or local government in addition to unpaid taxes as grounds for denial of an application or renewal of a license. (Page 62) Section 36: Denial of license or permit renewal. Amends AS 04.11.330(d) to allow for a theater license, a common carrier dispensary license, and a sporting event license to be renewed if it was exercised at least once during each of the preceding two calendar years. This is existing statute in relation to a recreational site license. (Page 62) Section 37: Denial of license or permit renewal. Adds new subsection 04.11.330 (e) to exempt a winery direct shipment license from certain provisions in the denial of an application section that do not pertain to this type of license. (Page 62) Section 38: Denial of request for relocation. Amends AS 04.11.340 to remove the reference to public convenience license regarding a denial of request for relocation. [Effective immediately] (Page 62) Section 39: Denial of request for relocation. Amends AS 04.11.340 (duplicate section), to add a reference to 04.11.400(k) and removes reference to 04.11.400(d), which exempts certain licenses from population limits. [Effective with other licensing changes, 1/1/2021] (Pages 63-64) Section 40: Denial of transfer of license to another person. Amends AS 04.11.360 to remove the public convenience license reference regarding denial of transfer of a license to another person. [Effective immediately] (Pages 64-65) Section 41: Denial of transfer of license to another person. Amends AS 04.11.360 (duplicate section) to remove the reference to a public convenience beverage dispensary license under former 04.11.400(i) or to a brewpub license regarding denial of transfer of a license to another person. [Effective with other licensing changes, 1/1/2021] (Pages 65-66) Section 42: Licensed premises in multi-unit residential housing development owned or financed by the Alaska Housing Finance Corporation. Amends AS 04.11.365 to rename restaurant designation permit to a restaurant endorsement as a licensed premises in multi-unit residential housing developments owned or financed by the Alaska Housing Finance Corporation. (Pages 66-67) Section 43: Suspension and revocation of licenses and permits. Amends AS 04.11.370(a) to add endorsements to the suspension and revocation of licenses and permits section. (Pages 67-68) Section 44: Conditions or Restrictions. Amends AS 04.11.395 to change the section title and adds a reference to endorsements. (Page 68) Section 45: Adds a new subsection AS 04.11.395(b) to allow the board delegate authority to the director to impose conditions or restrictions on any permit other than a conditional contractor's permit. The director reviews permit applications and issues all permits. (Page 68) Section 46: Population Limitations. Amends AS 04.11.400(a) to remove references to a public convenience license. [Effective immediately] (Pages 68-69) Section 47: Population limitations. Amends AS 04.11.400(a) (duplicate section), to edit subsection references, adds new population limit of 1:12,000 for new manufacturer retail licenses, adds licenses exempt from population limits and exempts local option populations from calculations. [Effective with other licensing changes, 1/1/2021] (Pages 70-71) Section 48: Population limitations. Repeals and reenacts AS 04.11.400(i) to list licenses exempt from population limits, including manufacturer (production only) licenses, wholesale licenses and currently exempt retail licenses that primarily cater to tourists and travelers. (Pages 71-72) Section 49: Population limitations. Amends AS 04.11.400(k) to edit reference to beverage dispensary license, allows relocation of a package store, lowers borough threshold population for qualifying boroughs, restricts number of licenses eligible for transfer to those exceeding population limits and defines number of allowed transfers by city, not borough. (Page 72) Section 50: Petition for additional restaurant or eating place licenses for certain local governing bodies. Adds new section AS 04.11.405 that gives first class cities, home rule cities, or unified municipalities the ability to petition the board for additional restaurant or eating place licenses allocated to their jurisdiction. [Effective immediately] (Pages 72-74) Section 51: Petition for additional restaurant or eating place licenses for certain local governing bodies. Amends AS 04.11.405(a) (duplicate section) that gives first class cities, home rule cities, or unified municipalities the ability to petition the board to grant additional restaurant or eating place licenses allocated to their jurisdiction under the new Article 9. [Effective with other licensing changes, 1/1/2021] (Page 74) Section 52: Petition for additional restaurant or eating place licenses for certain local governing bodies. Amends AS 04.11.405(b) (duplicate section) to allow the board to issue additional restaurant or eating place licenses under the new Article 9. [Effective with other licensing changes, 1/1/2021] (Pages 74-75) Section 53: Zoning limitations. Amends AS 04.11.420(a) to disallow a new or location transfer of a license, endorsement or permit in a municipality if a zoning regulation or ordinance prohibits it. (Page 75) Section 54: Zoning limitations. Adds new subsection AS 04.11.420(c) to allow a license to be renewed if it was initially issued prior to the effective date of a local zoning regulation or ordinance that would prohibit it, if it was issued in compliance with local zoning regulations and ordinances at the time. (Page 73) Section 55: Person and location. Amends AS 04.11.430 to allow licenses to be issued to government entities and tribal organizations. Place residency requirements on corporations and limited liability organizations. Adds a reference to endorsements in relation to information required, including telephone number, and email address. [Effective immediately] (Page 75) Section 56: Prohibited financial interest. Amends AS 04.11.450(b) to clarify that a wholesaler cannot own a manufacturer license or a retail license, removes restrictions on manufacturers owning a retail license, and removes references to repealed licenses. (Pages 75-76) Section 57: Prohibited financial interest. Amends AS 04.11.450(e) to clarify that a holder of a general wholesale or limited wholesale brewed beverage and wine license cannot be employed by or act as the agent or employee of a manufacturer or retail license. (Page 76) Section 58: Prohibited financial interest. Adds new subsections to AS 04.11.450 (g-h) to restrict manufacturers above a certain annual production level from owning a wholesale license or retail license and defines thresholds for production by product type. (Pages 76-77) Section 59: Prior public approval. Amends AS 04.11.460 to exempt a winery direct shipment license boundary restrictions that do not pertain to this type of license. (Page 77) Section 60: Objection. Amends AS 04.11.470 to add endorsements to allowable objections and protest. (Page 77) Section 61: Protest. Amends AS 04.11.480(a) to include endorsements regarding a person objecting to an application for issuance, renewal, transfer of location or transfer to another person. (Pages 77-78) Section 62: Protest. Amends 04.11.480(b) to include endorsements in the existing boundary limits for requesting a public hearing to protest the issuance, renewal, or transfer of a license. (Page 78) Section 63: Protest. Amends 04.11.480(c) to include endorsements in the existing section that allows a local governing body to establish conditions on a license's issuance, renewal, or transfer. (Page 78) Section 64: Protest. Adds new subsection 04.11.480(e) to clarify more than one local governing body to protest the issuance, renewal, relocation or transfer of a license if the location or proposed location is within the boundaries of more than one local government. (Page 79) Section 65: Local option. Amends AS 04.11.491(a) to insert renumbered references for license types that can be exempted from restrictions on sale in local option elections in a municipality. (Page 79) Section 66: Local option. Amends AS 04.11.491(b) to insert renumbered references for license types that can be exempted from restrictions on sale in local option elections in an established village. (Pages 79- 80) Section 67: Local option. Amends AS 04.11.491(d) to insert references to license types. (Page 80) Section 68: Local option. Amends AS 04.11.491(g) to insert references to license types. (Pages 80-81) Section 69: Procedure for action on license applications, suspensions, and revocations. Amends AS 04.11.510(b) to clarify the timeframes for immediate written notice of a denied application, and inform the applicant that they are entitled to submit a request to the director within 15 days for an informal conference. The applicant is then entitled to a formal hearing conducted by the Office of Administrative Hearings if they are dissatisfied. This section establishes timelines for these procedures. (Pages 81- 82) Section 70: Procedure for action on license applications, suspensions, and revocations. Amends AS 04.11.510(c) to correct the statutory reference to the Administrative Procedure Act, allows a licensee to submit a request for an informal conference to the director within 15 days after an accusation that may lead to a suspension or revocation of a license. This section establishes a timeline for this procedure. (Pages 82-83) Section 71: Notice to local governing body. Amends AS 04.11.520 to require the board to notify the local governing body of an established village, incorporated city, an organized borough, or a unified municipality within 10 business days after receipt of an application for the issuance or renewal of a license, endorsement, license with endorsements, or the transfer of a license to another person or location. (Page 84) Section 72: Suspension and revocation based on acts of employees. Amends AS 04.11.535(a) to add endorsements, reference to permittee as applicable and clarifying language. (Pages 83-84) Sections 73: License, endorsement, and conditional contractor's permit renewal and expiration. Amends AS 04.11.540 to add endorsements and conditional contractors permit to the existing statute regarding renewal and expiration of an application. (Page 84) Section 74: Appeals. Amends AS 04.11.560(b) to add endorsements to the appeals procedure in the event of a board decision relating to the issuance, renewal, transfer, relocation, suspension, or revocation of a license or endorsement. (Page 84) Section 75: Refund and forfeiture of fees. Amends AS 04.11.570 to add endorsements to existing statute regarding the refund and forfeiture of fees in the event of a denied application. (Pages 84-85) Section 76: Surrender or destruction of license. Amends 04.11.580(b) to clean up time limit language to "not later than 10 days" from "within 10 days." (Page 85) Section 77: Disposition of money. Amends AS 04.11.590(a) to include money collected from endorsements and permits to be transferred by the board to the Department of Commerce, Community and Economic Development and deposited to the general fund. (Page 85) Section 78: Refund to municipalities. Amends AS 04.11.610 to change "refund" to "allocation" throughout and specifies content of already-required reporting by municipalities for how license fee funds were used for alcohol-related education and enforcement. (Page 85) Section 79: Accessibility of license and licensed premises to inspection. Amends AS 04.11.630(b) to require easily available posting of a license, endorsements, permits, designated premises during a permitted event. (Pages 85-86) Section 80: Duration of licenses and permits. Amends AS 04.11.680 to add endorsements, conditional contractors permit, states that permits must be issued for a specified time and removes fee reduction for seasonal licenses. (Page 86) Chapter 16: Regulation of Sales and Distribution; Prohibited Acts Section 81: Hours of sale and presence on licensed premises (standard closing hours). Amends AS 04.16.010(c) to clarify the hours that a person cannot be on the licensed premises outside of allowed operating hours (8:00 a.m. to 5:00 a.m.) unless to conduct business with the licensee, maintenance or improvements or is the holder of a common carrier license, and adds restaurant endorsement reference. References new subsection (e) to AS 01.16.010. (Pages 86-87) Section 82: Hours of sale and presence on licensed premises. (Standard closing hours) Adds new subsections (e) and (f) to clarify the hours that a person cannot be on the licensed premises outside of allowed operating hours (10:00 p.m. to 9:00 a.m.) of a brewery, winery or distillery retail establishment unless to conduct business with the licensee, maintenance or improvements. Amends AS 04.16.010 to add new a penalty section (f), making it a violation. (Page 87) Section 83: Pricing and marketing of alcoholic beverages. Amends AS 04.16.015(a) to exempt manufacturer and package store sampling endorsements from the prohibition on providing alcohol free of charge, and defines a week as seven days for pricing and marketing of alcoholic beverages. (Pages 87-88) Section 84: Pricing and marketing of alcoholic beverages. Amends AS 04.16.015 by adding a new subsection (e) to set the penalty for violating this section as a violation. (Page 88) Section 85: Trade practices. Adds a new section AS 04.16.017 to specify illegal practices by manufacturers as defined in federal law, and directs the board to adopt regulations defining exceptions to these rules and define administrative penalties for violations. (Pages 88-90) Section 86: Solicitation of alcoholic beverages; purchase on behalf of another. Amends AS 04.16.020 to set the penalty ($100 fine) for unauthorized solicitation or purchase of alcoholic beverages. (Page 90) Section 87: Online sale and purchase of alcoholic beverages. Adds a new section AS 04.16.022 prohibiting online purchase and sale to Alaska consumers unless the licensee has a winery direct shipment license or package store shipping endorsement and sets penalties. (Page 90) Section 88: Illegal presence on premises involving alcoholic beverages. Amends AS 04.16.025(a) to add statutory references to all penalties involving sale without a license. (Pages 90-91) Section 89: Prohibited conduct relating to drunken persons. Amends AS 04.16.030 to change existing penalty for prohibited conduct relating to a drunken person, adds administrative penalty to licensee if employee is convicted of a violation of this section, and adds misdemeanor penalty for licensee who knowingly allows employees to violate this section. (Page 91) Section 90: Possession of ingredients for homebrew in certain areas. Amends AS 04.16.035 to change statutory reference to all local option areas, consistent with AS 04.21.025 restricting private manufacture of alcohol in all local option areas. (Page 91) Section 91: Possession of ingredients for homebrew in certain areas. Adds new subsections to AS 04.16.035 (b-c) to clarify current penalty for possession of ingredients for homebrew. (Page 91) Section 92: Access of drunken persons to licensed premises. Adds new subsections to AS 04.16.040 to relocate and change the penalty for prohibited access by a drunken person. (Pages 91-92) Section 93: Obligation to enforce restrictions in licensed premises. Adds new subsections to AS 04.16.045 (b-c) to relocate and change penalty for permitting consumption not authorized under a license. (Page 92) Section 94: Access of persons with restriction on purchasing alcohol. Amends AS 04.16.047 to reference the existing penalty for entering and remaining on licensed premises defined in AS 04.16.160. (Page 92) Section 95: Access to persons under the age of 21 to licensed premises. Amends AS 04.16.049(a) to add a reference to restaurant endorsement and club license. (Pages 92-93) Section 96: Access to persons under the age of 21 to licensed premises. Amends AS 04.16.049(c) to add additional license types allowed to have underage persons on premises as employees, ages 16 and 17, provided they are not serving alcohol. (Page 93) Section 97: Access to persons under the age of 21 to licensed premises. Amends AS 04.16.049(d) to add additional license types allowed to have underage persons on premises as employees, ages 18-20, provided they are not serving alcohol. (Page 93) Section 98: Access to persons under the age of 21 to licensed premises. Adds a new subsection to AS 04.16.049 (j) to additional license types allowed to have underage persons on premises if traveling, provided they are not served or consume alcohol. (Pages 93-94) Section 99: Furnishing or delivery of alcoholic beverages to persons under the age of 21. Repeals and reenacts AS 04.16.051(d) to define existing offense of furnishing or delivering alcohol to a minor. (Page 94) Section 100: Furnishing or delivery of alcoholic beverages to persons under the age of 21. Adds a new subsection to AS 04.16.051 (e) to relocate the existing C felony penalty for furnishing or delivering to a minor by a person, for situations involving serious harm, repeat offenses, and if the violation occurs in a local option area. (Page 94) Section 101: Furnishing of alcoholic beverages to person under the age of 21 by licensees. Amends AS 04.16.052 to change the penalties for furnishing or delivering alcohol to a minor by a licensee or employee, adds administrative penalty to licensee if an employee is convicted of a violation of this section and shifts misdemeanor penalty in AS 04.16.150 to the licensee who knowingly allows employees to violate this section. (Pages 94-95) Section 102: Room rental for purposes of consuming alcoholic beverages. Amends AS 04.16.055 to maintain the current penalty of class A misdemeanor for renting a room for the purpose of providing alcoholic beverages to a person under 21 years of age. (Page 95) Section 103: Permitting minor to illegally possess liquor in a dwelling. Amends AS 04.16.057(b) to maintain current penalty as a violation and adds $500 fine. (Page 95) Section 104: Purchase by or delivery to persons under the age of 21. Amends AS 04.16.060(e) to reference existing requirement that a person under the age of 21 years of age may not misrepresent their age or having parental consent in order to enter and remain in a licensed premises under AS 04.16.049(a)(2). (Page 95) Section 105: Purchase by or delivery to persons under the age of 21. Amends AS 04.16.060 to add penalties for violating this section. For adults (at least 21 years of age) penalty cannot be reduced. For minors (under 21 years of age) penalty can be reduced if youth completes an alcohol safety action program or a community diversion panel. Applies the same penalty changes as previously enacted in 2016 for AS 04.16.049 and 04.16.050 for minors. (Pages 95-96) Section 106: Consumption at school events. Amends AS 04.16.080 to edit the title for the section and prohibits alcohol sales at a school event if it is expected to attract attendees under 21 years of age. (Page 96) Section 107: Consumption at school events. Amends AS 04.16.080 by adding two new subsections (b) and (c) to define the penalty for violating this section. (Page 96) Section 108: Prohibition of bottle clubs. Amends AS 04.16.090(c) clarifies the definition of "consideration" in relation to bottle clubs. (Pages 96-97) Section 109: Prohibition of bottle clubs. Adds new subsections to AS 04.16.090 (d-e) to define the crime of maintaining a bottle club, relocates and maintains current penalty. (Page 97) Section 110: Sale of certain alcoholic beverages prohibited. Amends AS 04.16.110 to define sale of a prohibited alcoholic beverage, relocates and maintains current penalty. (Page 97) Section 111: Removal or introduction of alcoholic beverages. Amends AS 04.16.120 to define removal or introduction of alcoholic beverages, sets penalty and exemptions. (Pages 97-98) Sections 112-114: Alcoholic beverages transported by common carrier. Repeals and reenacts AS 04.16.125(a) to allow for delivery to a person over the age of 21 and adds clarifying language to how the delivery must be labeled. Maintains penalty for unauthorized transportation of alcoholic beverages by common carrier into a local option area and makes noncompliance a violation. (Page 98) Section 115: Stock confined to licensed premises. Adds a new subsection to AS 04.16.130 (c) to set the penalty for unauthorized storage of alcoholic beverages as a violation. (Pages 98-99) Section 116: Sale or consumption of alcoholic beverages in a warehouse. Amends AS 04.16.140 to add sections (b-c) to set the penalty for consuming alcoholic beverages in a warehouse as a violation. (Page 99) Section 117: Licensee responsible for violations. Amends AS 04.16.150 to set the penalty for failure to ensure compliance as a violation. (Page 99) Section 118: Restriction on purchasing alcoholic beverages. Amends AS 04.16.160 to add new sections (cd) to maintain existing penalty for noncompliance on a restriction for purchasing alcohol. (Page 99 Section 119: Source of alcoholic beverages. Amends AS 04.16.170 to exempt winery direct shipment license, maintains penalties for sale of alcoholic beverages from or to an unlicensed person. (Page 99) Section 120: Source of alcoholic beverages. Amends AS 04.16.170 to add new subsections (c-d) to maintain the existing penalty for violating this section as class A misdemeanor. (Page 99) Section 121: Restrictions on purchase and sale of alcoholic beverages. Amends AS 04.16.172 to renumber and statutory references to the new license types and maintains current misdemeanor A penalty for licensee obtaining alcoholic beverages from an unlicensed seller. (Pages 99-100) Section 122: Restrictions on purchase and sale of alcoholic beverages. Amends AS 04.16.172 to add new subsections (b-c) to maintain the existing misdemeanor A penalty for violating this section. (Page 100) Section 123: Furnishing alcoholic beverages in aid of gambling enterprise. Amends AS 04.16.175 to add new subsections that maintain the existing misdemeanor A penalty for the crime of furnishing an alcoholic beverage in aid of a gambling enterprise. (Page 100) Section 124: Penalties for violation. Amends AS 04.16.180(b) to add statutory references to prohibited conduct related to drunken persons and furnishing alcoholic beverages to persons under the age of 21 by licensees. (Page 100) Section 125: Penalties for violation. Amends AS 04.16.180(b) to add definition for "conviction." (Page 100) Section 126: Penalties for violation. Amends AS 04.16.180 to add new subsections (f-g), adds clarification that licensees are subject to administrative penalties imposed by the board for violations of AS 04.16.030 and AS 04.16.052, and adds mitigating circumstances for licensees. (Pages 100- 102) Section 127-130: Forfeiture and seizures. Amends AS 04.16.220 to renumber and cross-reference the new license types. (Pages 102-104) Chapter 21: General Provisions Section 131: Keg registration. Adds a new section 04.21.012 establishing a keg registration process including proof of age, registration form requirements, identification tags, and establishes the penalties for possession and sale of alcoholic beverages in an unregistered keg. (Pages 104-106) Section 132-133: Civil liability of persons providing alcoholic beverages. Amends AS 04.21.020 to renumber and cross-reference license types. (Page 105) Section 134: Alcohol server education course. Repeals and reenacts AS 04.21.025(a), which requires a license holder and their employees to check ID's, including a conditional contractor permit. (Pages 105-106 Section 135: Alcohol server education course. Amends section AS 04.21.025(b) to require permittees (along with licensees, agents, and employees) to keep the alcohol server education card on the licensed premise during working hours. (Page 106) Section 136: Alcohol server education course. Amends section AS 04.21.025(c) to require permittees (along with licensees, agents, and employees) to take and pass an alcohol server education course within 30 days after being licensed, permitted, or employed. Additionally, a person may not sell or serve alcoholic beverages, or check the ID of a patron at a permitted event unless that person possesses a valid alcohol server card. (Page 106) Section 137: Alcohol server education course. Amends AS 04.21.025 to add new subsections (f-h), which exempts manufacturer license holders from the server alcohol education course requirement unless they also hold a sampling endorsement, defines failure to comply and sets the penalty as a violation. (Pages 106- 107) Section 138: Proof of age and of not being restricted from purchasing alcoholic beverages. Amends AS 04.21.050 to renumber references to license types. (Pages 107-108) Section 139: Warehousing of alcoholic beverages. Amends AS 04.21.060 to add a new subsection (b), which define the penalty of storing alcoholic beverages and sets it at a violation. (Page 108) Section 140: Posting of warning signs. Repeals and reenacts AS 04.21.065(a) to update the license and permit types required to post warning signs and adds statutory references. (Pages 108-109) Section 141: Fines and other criminal penalties. Adds new sections AS 04.21.072, 04.21.074, and 04.21.076 to set penalties for other violations, misdemeanors or felonies, unless otherwise specified. Directs the supreme court to establish a bail schedule and places requirements on the courts for suspending fines or imposition/execution of sentence. (Page 109) Section 142: Court records for persons under 21 years of age. Amends AS 04.21.078 to add statutory reference to violations of AS 04.16.060, Purchase by or delivery to persons under the age of 21, requiring that charges under this section for an underage person is not published on Court View, consistent with changes passed in 2016 related to minors charged under AS 04.16.049 and AS 04.16.050. (Pages 109-110) Section 143: Definitions. Amends AS 04.21.080(b)(6) to add permit holders and license holders. (Page 110) Section 144: Definitions. Amends AS 04.21.080(b)(15) to add endorsement to a licensed premises. (Page 110) Section 145: Definitions. Amends AS 04.21.080(b) with definitions: bona fide restaurant, brewed beverage, calendar year, cider, distilled spirit, golf course, kombucha, mead, sake, and wine. (Pages 110-111) Changes to Other Titles Section 146: Definitions. Amends AS 05.15.690(48) to renumber statutory reference for a vendor to include an establishment that holds a beverage dispensary license. (Page 111) Section 147-155: Amendments to various other titles. Amends references to Title 4 and license types in new Chapter 04.09 in Titles 9, 11, 12 and 18. (Pages 112- 117) Section 156: Winery direct shipment tax; statement; audit. Adds a new section AS 43.60.060 to establish tax collection on direct wine shipments from out of state business holding this license and outlines requirements for the Department of Revenue. (Page 117) Section 157: Exemptions. Amends statutory reference to Title 4 for new Chapter 04.09. (Page 117) Section 158: Definitions. Amends statutory reference in the definition of "business proprietor." (Page 118) Transition and Effective Dates Section 159: Adds a new section to the uncodified law of the State of Alaska, adding a Direct Court Rule Amendment, amending Rule 17(h) Alaska Rules of Minor Offense Procedure, to add AS 04.16.060(g) to joinder limits, similar to changes passed in 2016 for AS 04.16.049 and AS 04.16.050. (Page 118) Section 160-161: Repeals various sections of AS 04.11 amended by the sections of this bill. (Page 118) Section 162: Repeals the AS 04.09.270(f) to sunset licenses issued as recreational site licenses before the effective date of the legislation. The repeal is effective 1/1/2029. (Page 118) Section 163: Repeals the transition sections (165 & 166) of this legislation on 1/1/2021. (Page 118) Section 164: Applicability section for offenses committed on or after the effective date of certain sections. (Pages 118-119) Section 165: Adds a new section to uncodified law regarding transition. The ABC board may begin to immediately implement certain sections that are effective 1/1/2021 through applications under the new licensing structure and collecting fees at the newly established amounts. [Effective 9/1/2020] (Page 119) Section 166: Adds a new section to uncodified law to provide transition language for the ABC board to convert certain licenses under this Act within 90 days of the effective date of this section. (Pages 119-122) Section 167: Adds a new section to uncodified law to provide transition language for the ABC board to issue a seasonal restaurant or eating place tourism license before new section AS 04.09.350, seasonal restaurant or eating place tourism license, takes effect. (Pages 122-123) Section 168: Adds transition language for the department to promulgate regulations. (Page 123) Section 169: Effective dates for sections to be implemented immediately. (Page 123) Section 170: Effective dates for board to initiate application process and collect new fees for licenses beginning 1/1/2021. (Page 123) Section 171: Except as provided elsewhere, effective date of this Act is 1/1/2021. (Page 123) [End of sectional analysis SB 52 was held over.] 4:52:52 PM ADJOURNMENT There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 4:52 p.m.

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